Encore Strategic Benchmarking provides insight into a company's financial key performance indicators (KPIs) with data derived from expenses, revenue, and employee count. The 16 metrics calculated quarterly and monthly measure overall profitability and the employees' contribution over revenue and net operating income.
All accounts in the Encore Strategic Benchmarking app are classified to include account groups, categories, and subcategories which consist of all accounts that are directly mapped to that specific grouping. This consists of all accounts associated with their parent categories and any nested subcategories. By following this approach, any account that is mapped to the designated group, category, or subcategory, including those mapped to the nested categories and subcategories within the account hierarchy, will be incorporated.
1. Product Margin
The Product Margin metric shows a column chart with product margin percentages by quarter and a monthly layout of the selected range. It is product revenue minus product cost of goods sold (COGS) expressed as a percentage of product revenue.
Calculation: (Product Sales - Product COGS) / Product Sales
Data Source: Encore mapping
Account Grouping for Product Margin
| Account Category | Account Subcategory |
| Product Sales | Hardware & Software |
| Cloud Resale | |
| Product COGS | Hardware & Software Costs |
| Cloud Resale COGS | |
| Special Product 1 | |
| Special Product 2 |
2. Percent of Services to Total Revenue
The Percent of Services to Total Revenue metric shows a column chart with the percentage of services to total revenue frequency by quarter and a monthly layout of the selected range. This is the total service revenue expressed as a percentage of total revenue.
Calculation: Service Revenue / Total Revenue
Data Source: Encore mapping
Account Grouping for Percent of Services to Total Revenue
- Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - - Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances
3. Service Gross Profit Margin
The metric Service Gross Profit Margin benchmark displays a column chart with service gross profit margin percentages by quarter and a monthly layout of the selected range. It is service revenue minus service cost of goods sold (COGS) expressed as a percentage of service revenue.
Calculation: (Service Revenue - Service COGS) / Service Revenue
Data Source: Encore mapping
Account Grouping for Service Gross Profit Margin
- Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - - Service COGS
Account Category Account Subcategory Recurring Service COGS Managed Services Costs BCDR Security Costs Labor Costs Technician Salaries Technician Payroll Taxes Technician Benefits Project Costs VOIP Costs - Hardware As A Service Costs -
4. Percent of Recurring Revenues to Total Service Revenue
The Percent of Recurring Revenues to Total Service Revenue metric has a column chart showing the percentage of recurring revenues to total service revenue frequency by quarter and monthly layout of the selected range. It is recurring service revenue expressed as a percentage of total service revenue.
Calculation: Recurring Service Revenue / Total Service Revenue
Data Source: Encore mapping
Account Grouping for Percent of Recurring Revenues to Total Service Revenue
- Recurring Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security - Total Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware as a Service Revenue -
5. Percent of Project and Installation Revenue to Total Service Revenue
The metric Percent of Recurring Revenues to Total Service Revenue has a column chart showing the percentage of recurring revenues to total service revenue frequency by quarter and a monthly layout of the selected range. It is recurring service revenue expressed as a percentage of total service revenue.
Calculation: Project Revenue / Total Service Revenue
Data Source: Encore mapping
Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue
- Project Revenue
Account Category ccount Subcategory Labor-Related Revenue Project Revenues
- Total Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue -
6. Percentage of Other Non-Recurring Revenue to Total Service Revenue
The Percent of Service Salaries to Service Revenue metric is a column chart showing the percentage of service salaries to service revenue frequency by quarter and monthly layout of the selected range. It is service salaries expressed as a percentage of total service revenue.
Calculation: Other Non-Recurring Revenue / Total Service Revenue
Data Source: Encore mapping
Account Grouping for Percent of Project and Installation Revenue to Total Service Revenue
- Other Non-Recurring Project Revenue
Account Category Account Subcategory Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income -
- Total Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue -
7. Percent of Service Salaries to Service Revenue
The Percent of Service Salaries to Service Revenue metric is a column chart showing the percentage of service salaries to service revenue frequency by quarter and a monthly layout of the selected range. It is service salaries expressed as a percentage of total service revenue.
Calculation: Technician Salaries / Service Revenue
Data Source: Encore mapping
Account Grouping for Percent of Service Salaries to Service Revenue
- Technician Salaries
Account Group Account Category Account Subcategory COGS - Cost of Goods Sold Labor Costs Technician Salaries
- Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue -
8. Sales Salaries and Commissions as a Percentage of Revenue
The Sales Salaries and Commissions as a Percentage of Revenue metric displays a column chart with sales salaries and commissions as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is sales salaries plus commission expressed as a percentage of total revenue.
Calculation: (Salaries + Commissions) / Total Revenue
Data Source: Encore mapping
Account Groupings for Sales Salaries and Commissions as a Percentage of Revenue
- Salaries + Commissions
Account Category Account Subcategory Sales Expense Salaries Commissions
- Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
9. Advertising and Marketing as a Percentage of Revenue
The Advertising and Marketing as a Percentage of Revenue metric shows a column chart with advertising and marketing as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is advertising expense plus marketing expense expressed as a percentage of total revenue.
Calculation: (Advertising + Marketing) / Total Revenue
Data Source: Encore mapping
Account Grouping for Advertising and Marketing as a Percentage of Revenue
- Advertising + Marketing
Account Group Account Category Account Subcategory COGS - Cost of Goods Sold Sales Expense Marketing
Expenses Advertising -
- Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
10. Admin as a Percentage of Revenue
The Admin as a Percentage of Revenue metric has a column chart showing admin as a percentage of revenue frequency by quarter and a monthly layout of the selected range. It is admin expenses expressed as a percentage of total revenue.
Calculation: Total Admin Expenses / Total Revenue
Data Source: Encore mapping
Account Groupings for Admin as a Percentage of Revenue
- Total Admin Expenses
Account Group Account Category Expenses Salaries - Admin
- Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
11. Gross Profit After Sales Expense
The Gross Profit After Sales Expense metric shows the Gross Profit After Sales Expense frequency by quarter and a monthly layout of the selected range. It is the Total Revenue less the Total Cost of goods sold minus sales expenses.
Calculation: (Total Revenue - COGS) - Sales Expenses
Data Source: Encore mapping
Account Groupings for Gross Profit After Sales Expense
- Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
- COGS
Account Group Account Category Account Subcategory COGS - Cost of Goods Sold Product COGS Hardware & Software Costs Cloud Resale COGS Special Product 1 Special Product 2 Recurring Service COGS Managed Services Costs BCDR Security Costs Labor Costs Technician Salaries Technician Payroll Taxes Technician Benefits Project Costs VOIP Costs - Hardware As A Service Revenue - Sales Expense Salaries Commissions Marketing Travel and Lodging Training Other
12. Service Revenue per Service Person
The metric Service Revenue per Service Person is a column chart showing the frequency of Service Revenue per Service Person by quarter and a monthly layout of the selected range. It measures service revenue generated by each service person.
Calculation: Service Revenue / Service Person Count
Data Source: Encore mapping for Service Revenue and Encore Settings for Service Person Count
Account Grouping for Service Revenue per Service Person*
- Service Revenue
Account Category Account Subcategory Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue -
*Service Person Count represents the calculated average of Service Employee Headcount from the Encore Benchmarking Employee Headcount Form within the specified reporting period.
13. Revenue per Employee
The metric Revenue per Employee is a column chart showing Revenue per Employee frequency by quarter and a monthly layout of the selected range. it is the ratio that roughly measures revenue generated by each employee.
Calculation: Revenue / Employee Count
Data Source: Encore mapping for Revenue and Encore Settings for Employee Count
Account Grouping for Revenue per Employee
- Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Special Product 1 Cloud Resale Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
Employee Count represents the calculated average of Service Employee, Sales, and Admin Headcount totals from the Encore Benchmarking Employee Headcount Form within the specified reporting period.
14. Net Operating Income
The metric Net Operating Income shows net operating income percentages by quarter and a monthly layout of the selected range. It is Total Revenue minus Cost of Goods Sold(COGS), Expenses, Depreciation, and Amortization.
Calculation: Total Revenue – (COGS + Expense - Taxes)
Data Source: Encore mapping
Account Groupings for Net Operating Income
- Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -
- COGS
Account Group Account Category Account Subcategory COGS - Cost of Goods Sold Product COGS Hardware & Software Costs Cloud Resale COGS Special Product 1 Special Product 2 Recurring Service COGS Managed Services Costs BCDR Security Costs Labor Costs Technician Salaries Technician Payroll Taxes Technician Benefits Project Costs VOIP Costs - Hardware As A Service Revenue - Sales ExpenseReturns & Allowances Salaries Commissions Marketing Travel and Lodging Training Other
- Expenses
Account Group Account Category Account Subcategory Expenses Computer and Internet Continuing Education Dues and Subscriptions Employee Benefits Insurance Legal and Professional Licenses and Permits Miscellaneous Office Expense Officer Salaries Repairs and Maintenance Salaries - Admin Printing Accounting Advertising Automobile Expense Bank charges Books and publications Contributions Postage and Delivery Rent Telephone Travel Utilities Website Meals & Entertainment Taxes Taxes - Business Taxes - Payroll
15. Net Operating Profit per Employee
The metric Net Operating Profit per Employee shows a chart with each employee's net operating profit frequency by quarter and a monthly layout of the selected range. It is the ratio that roughly measures net operating profit generated by each employee.
Calculation: Net Operating Income / Employee Count
Data Source: Encore mapping for Net Operating Profit and Encore Settings for Employee Count
16. Days Sales Outstanding (DSO)
The metric Days Sales Outstanding displays a column chart with the sales outstanding in days for the current calendar period. It is a measure of the average number of days that it takes a company to collect payment for a sale.
Calculation: DSO = (Average Accounts Receivable / Total Revenue) * number of days in the specified reporting period
Data Source: Encore mapping
Account Grouping for DSO
- Accounts Receivable
Account Category Account Subcategory Accounts receivable (A/R) - Total Revenue
Account Group Account Category Account Subcategory Income Product Sales Hardware & Software Cloud Resale Special Product 1 - Special Product 2 - Recurring Service Revenues Managed Services BCDR Security Labor-Related Revenue Block Hour Revenue Time & Materials Project Revenues VOIP Revenue - Hardware As A Service Revenue - Miscellaneous Income - Returns & Allowances -